Do innovation scoreboards adequately measure regional innovation? Hugo Hollanders UNU-MERIT,...
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Do innovation scoreboards adequately measure regional innovation?
Hugo HollandersUNU-MERIT, Maastricht University
Week of Innovative Regions in Europe (WIRE 2014)12-13 June 2014, Athens
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Innovation Scoreboards• Regions are an appropriate level for stimulating
innovation: many regional governments have important competences and budgets in the field of innovation
• The Regional Innovation Scoreboard (RIS) helps to understand innovation in the regional context and provides statistical facts on regions' innovation performance
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RIS measurement framework• RIS follows
the Innovation Union Scoreboard (IUS)
• IUS 2014 uses 8 innovation dimensions and 25 indicators• Due to limited availability of regional data RIS 2014
covers 7 dimensions and 11 indicators
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Availability of regional level data• Available:
– (Tertiary) Educational attainment– R&D expenditures, R&D employment– Patent applications– Employment in high-tech or knowledge-intensive
industries• Not available:
– Data on innovation activities and outputs from the Community Innovation Survey:• E.g. Innovation expenditures, Share of companies
that innovate, Sales due to product innovations
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RIS 2014: 29.2% missing data, in particular CIS data Data
availability Population having completed tertiary education 94.9% Employment in medium-high/high-tech manufacturing and knowledge-intensive services
91.8%
EPO patent applications 87.6% R&D expenditure in the business sector 75.1% R&D expenditure in the public sector 71.8% All indicators 70.8% Product or process innovators (CIS) 64.5% Innovative SMEs collaborating with others (CIS) 64.2% Marketing or organisational innovators (CIS) 63.3% SMEs innovating in-house (CIS) 60.9% Non-R&D innovation expenditure (CIS) 55.3% Sales of new-to-market and new-to-firm innovations (CIS) 49.6%
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Estimate missing regional CIS data• For CIS indicators regional data can be constructed as follows:
1. Assume that national “intensities” or “shares” observed at the NACE 2-digit industry level also apply at the regional level
2. Combine these intensities with NACE 2-digit regional data on employment to calculate an estimate
3. Combine these intensities with NACE 2-digit regional data on number of enter to calculate an estimate
4. Take the average of both estimates
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Quality of CIS estimates
0
10
20
30
40
50
60
70
80
90
100
0 10 20 30 40 50 60 70
CIS 2010 regional
estimates
CIS 2010 regional data
SMEs innovating in-house
0
5
10
15
20
25
0 5 10 15 20 25
CIS 2010 regional
estimates
CIS 2010 regional data
Innovative SMEs collaborating
0
10
20
30
40
50
60
0 10 20 30 40 50 60 70
CIS 2010 regional
estimates
CIS 2010 regional data
Product/process innovators
0
10
20
30
40
50
60
0 10 20 30 40 50 60 70
CIS 2010 regional
estimates
CIS 2010 regional data
Marketing/organisational innovators
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
0.00 0.50 1.00 1.50 2.00 2.50
CIS 2010 regional
estimates
CIS 2010 regional data
Non-R&D innovation expenditures
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.0 4.0 8.0 12.0 16.0
CIS 2010 regional
estimates
CIS 2010 regional data
New-to-market/firm sales
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Regional Innovation Scoreboard• 190 European regions, 11
indicators, 4 years, 4 performance groups:– Innovation leaders: 20% or
more above EU27– Innovation followers: less
than 20% above but more than 10% below EU27
– Moderate innovators: less than 10% below but more than 50% below EU27
– Modest innovators: 50% or less below EU27
• Innovation divide between North-West and South-East
• Regional performance groups match the IUS groups quite well
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Innovators perform better in business activities I nnovation
leaders I nnovation followers
Moderate innovators
Modest innovators
Population having completed tertiary education
120 109 81 72
R&D expenditure in the public sector
120 100 69 40
R&D expenditure in the business sector
133 83 52 23
Non-R&D innovation expenditure 102 86 93 69 SMEs innovating in-house 131 118 70 24 Innovative SMEs collaborating with others
126 135 59 33
EPO patent applications 135 84 43 20 Product or process innovators 138 101 67 26 Marketing or organisational innovators
103 98 80 31
Employment in medium-high/high-tech manufacturing and knowledge-intensive services
121 94 86 62
Sales of new-to-market and new-to-firm innovations
115 94 91 45
Average scores for each performance group relative to the EU average (=100)
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Partly neglected: services innovation• European Service Innovation Scoreboard (ESIS)
measures the importance of service innovation in a region. The indicators are presented in a way similar to the Innovation Union Scoreboard with indicators grouped into five dimensions measuring framework conditions, service innovation (inputs, throughputs and outputs) and its outcomes
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ESIS indicators: focus on services innovationService innovation - input Innovation expenditures (% turnover) - Knowledge Intensive Business Services (KIBS) Innovation expenditures (% turnover) - Networking, connecting and brokerage services Innovation expenditures (% turnover) - Utilities and infrastructure services Share of innovators cooperating with others Employees with higher education degree (ISCED 5-6) (% all employees) Business expenditure on R&D (BERD) (% GERD) Researchers (% active population) - Business enterprise sector Total R&D personnel (% active population) - Business enterprise sector Service innovation - throughput Share of companies that introduced a service innovation Product or process innovators (%) - Knowledge Intensive Business Services (KIBS) Product or process innovators (%) - Networking, connecting and brokerage services Product or process innovators (%) - Utilities and infrastructure services Marketing innovators (%) - Knowledge Intensive Business Services (KIBS) Marketing innovators (%) - Networking, connecting and brokerage services Marketing innovators (%) - Utilities and infrastructure services Organizational innovators (%) - Knowledge Intensive Business Services (KIBS) Organizational innovators (%) - Networking, connecting and brokerage services Organizational innovators (%) - Utilities and infrastructure services Service innovation - output Employment in service innovation intensive industries (% total employment) Share of turnover of newly introduced innovations new to the market Share of turnover of newly introduced innovations new to the firm
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Comparing RIS and ESIS• Regions performing less well in the RIS perform relatively
better on services innovation
Relative to EU27/28=100
0 20 40 60 80 100 120 140
Leader
Follower
Moderate
Modest
European Service Innovation ScoreboardRegional Innovation Scoreboard
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Neglected: Innovation outputs• Mostly neglected as surveys are not designed to capture
outputs
• Exception: CIS => sales of innovative products
• Not captured: commercialization or uptake of innovations
• Innobarometer 2014 specifically designed to measure commercialization of innovations and the role of public support
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51.3%
53.2%53.8%
65.3%
32.3%
44.0%45.2%
49.3%
55.0%56.0%57.3%
62.0%63.0%63.6%
36.9%38.0%
50.8%
51.4%
58.9%
61.0%62.0%
63.6%
65.3%68.3%
71.0%
49.3%
54.3%
59.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
ESTONIAHUNGARY
LITHUANIACYPRUSFRANCE
NETHERLANDSBULGARIA
GREECEFINLAND
SPAINGERMANY
SWEDENLATVIA
BELGIUMUK
SLOVENIACZECH REP.
ROMANIAPOLAND
ITALYAUSTRIA
LUXEMBOURGIRELAND
SLOVAKIADENMARK
PORTUGALCROATIA
MALTA
Introduced a product innovation
Innovation leader Innovation follower
Moderate innovator Modest innovator
20.1%
19.2%
17.8%
14.4%
38.0%37.9%
34.8%32.7%
28.0%23.0%
21.8%
19.8%
18.8%
15.2%
55.0%53.2%
46.2%
43.1%
35.1%
31.8%31.6%31.1%
29.4%
19.0%
17.2%
46.8%
45.1%
34.9%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
CROATIAPOLAND
BULGARIASLOVAKIA
LATVIACZECH REP.
SLOVENIAIRELAND
HUNGARYROMANIA
CYPRUSUK
GREECESPAIN
MALTALITHUANIA
BELGIUMAUSTRIAFRANCE
GERMANYESTONIA
DENMARKITALY
NETHERLANDSSWEDEN
PORTUGALLUXEMBOURG
FINLAND
Did not commercialize innovations
Innovation leader Innovation follower
Moderate innovator Modest innovator
Less innovative countries commercialize less innovations
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Conclusions• Existing scoreboard focus on measuring inputs and
outputs
• Less innovative countries/regions would do better if services innovation would be better captured
• Less innovative countries/regions need to benefit more from the outputs of innovation by increasing the share of innovations that are commercialized
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Hugo Hollanders - MERIT, Maastricht [email protected]
• The Regional Innovation Scoreboard is part of the EC funded European Innovation Scoreboards project
http://ec.europa.eu/enterprise/policies/innovation/policy/regional-innovation/
• The European Service Innovation Scoreboard is part of the EC funded European Service Innovation Centre
http://ec.europa.eu/enterprise/initiatives/esic/scoreboard/index_en.htm• The Innobarometer 2014 is available at:
http://ec.europa.eu/enterprise/policies/innovation/policy/innobarometer/index_en.htm
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